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CIRCULAR No.16-TC/NSNN ON THE 7TH OF MARCH 1995 OF THE MINISTRY OF FINANCE GUIDING THE IMPLEMENTATION, SUPPLEMENTING AND MODIFYING THE TABLE OF CONTENTS OF THE STATE BUDGET

The Ministry of Finance has issued Circular No.68-TC/NSNN on the 15th of August 1994 on the systematization, complementing and modification of a number of chapters and sections of the Table of Contents of the current State Budget. The Circular took effect on the 1st of January 1994. Now, in view of the many changes in financial management and in the management of the State Budget, the Ministry of Finance makes the following additions and modifications to a number of chapters and sections of the Table of Contents of the State Budget, and provides the following guidance for the accounting, accountancy and the final accounts of the arising revenues and expenditures of the State budget :

A.- ON THE CHAPTERS :

1. To add Chapter 36A entitled "State Audit" in order to carry out the accounting, accountancy and the final accounts of expenditures of the State Budget by the State Audit agency. The State budget expenditures made after the 1st of January 1995 shall be accounted and have their final accounts stated in Chapter 36A and the corresponding categories, items, classes and sections in the Table of Contents of the State Budget.

2. To drop Chapter 81A concerning "the Managing Board of the Ho Chi Minh City Export Processing Zone" and Chapter 82A about "the Managing Board of the Haiphong Export Processing Zone"; to add new Chapter 81A entitled "Managing Boards of the Export Processing Zones" in order account and monitor the State budget allocations to the managing boards of the export processing zones : the State budget allocations made after the 1st of January 1995 to the managing boards of the export processing zones shall be accounted and have their final accounts entered in new Chapter 81A concerning the "Managing Boards of the Export Processing Zones" at the corresponding categories, items, classes and sectors in the current Table of Contents of the State Budget.

B.- ON REVENUES :

1. To account and monitor the taxes on goods of all categories licensed to be exported or imported through the land border (including both documented and undocumented goods) and their remittances to the State budget, the following sections are added :

- Section 06 on "Tax on exports through the land border".

- Section 07 "Tax on imports through the land border".

- Section 32 on "Other revenues from import-export taxes on goods going across the land border".

In order to avoid any errors or mistakes, in the voucher of remittances to the State budget, the following must be clearly stated : "Payment of taxes on exports and imports through the land border, or other revenues concerning the taxes on exports and imports through the land border". The goods allowed to be exported or imported by air or by sea shall continue to be accounted in Section 04 concerning "Export Tax", Section 05 concerning "Import tax", and Section 33 concerning "Other revenues from exports and import taxes" in the current Table of Contents of the State Budget.

2. To add Section 15 concerning "Social Insurance Revenues" in order to account, enter for accountancy and make the final financial accounts of the social insurance payments already deducted from the accounts of the administrative and non-business units receiving local budget allocations, and already remitted to the State budget by the Finance and Pricing services in the provinces and cities, as well as the social insurance payments already deducted from the accounts of the administrative and non-business units receiving allocations from the Central Budget and remitted to the State budget by the Ministry of Finance (Central Budget), so that the Central Budget will re-allocate them to the social insurance fund as stipulated in Official Dispatch No.3478-TC HCVX on the 27th of December 1994 of the Ministry of Finance.

- When remitting social insurance payments to the State budget, the voucher shall be entered into Chapter 99, Category 13, Item 2, Class 3 of Section 15 on "Revenues from Social Insurance" (100% remitted to the Central Budget).

- When making deductions to the quarterly expenditure plan of the unit, the sum shall be accounted, entered for accountancy and for the final financial statement of the expenditures at the corresponding category, item and class of Section 68 concerning "Social Insurance Expenditures".

- When transferring the social insurance payments from the State budget to the Social Insurance Fund managed by the Ministry of Labor, War Invalids and Social Affairs in order to pay the pensions and other expenditures under the social welfare policies, this amount shall be entered into the accountancy and accounted in Chapter 99A, Category 13, Item 2, Class 3 of Section 68 concerning "social insurance expenditures". At the end of each year, when drawing up the State budget financial statement to report to the National Assembly, the revenues and expenditures regarding social insurance mentioned above shall be taken out of the Central Budget so as to avoid repeat in the final statement of revenues and expenditures of the State budget.

3. To open Section 40 concerning "Revenues from sales of State-owned houses" in order to account, enter into the accounts and make the final financial statement of the revenues from sales of State-owned houses to the subjects stipulated in Decree No.61-CP on the 5th of July 1994 of the Government. In 1995, on the basis of Decision No.829-TTg on the 30th of December 1994 and Circular No.6-TC/NSNN on the 6th of January 1995, the Ministry of Finance decided that the revenues from the granting of the right to land use associated with the sales of State-owned houses as from the 1st of January 1995 shall be accounted, entered for accountancy and final statement of accounts in Section 40 entitled "Revenue from sales of State-owned houses".

In remitting the sales of State-owned houses (including the levies on the land use right associated with the State-owned houses) to the State budget, the vouchers of remittances shall be entered into the corresponding category 14, Item 01, Class 9 and Section 40 entitled "Collection of sales of State-owned houses".

4. Section 28 entitled "Revenue from the granting of land use right in order to account, enter for accountancy and make final statement of accounts of the levies on the land use right with regard to the organizations and individuals under current regulations". However, the revenue on the granting of the right to use the land belonging to the State-owned houses from the 1st of January 1995 onward shall not be accounted into Section 28 concerning the "Granting of the land use right", but into Section 40 concerning " Revenue from the sales of State-owned houses" as has been already indicated at Point 3, Part B. When remitting the levies on the granting of the land use right to the State budget, the vouchers of remittances shall be entered into the corresponding chapter, category 14, Item 01, Class 9, Section 28 concerning "Revenue on the granting of land use rights".

5. Item 29 concerning the "Tax on the transfer of land use rights" shall be accounted, entered for accountancy and final statement of accounts of the tax on land use rights of the organizations and individuals under the regime stipulated at the law on tax on the transfer of land use rights. The vouchers of the tax on the transfer of land use rights remitted to the State budget shall be entered into the corresponding chapter, category, class and Section 29 concerning "Tax on the transfer of land use rights".

This Circular takes effect on the 1st of January 1995; the ministries, branches, local units, financial agencies, tax agencies and State Treasuries at different levels shall guide the dependent units to account, enter into the accountancy and make the final financial accounts of the arising State budget revenues and expenditures in conformity with the stipulations of this Circular. The regulations at Circular No.68-TC/NSNN on the 15th of August 1994 which are contrary to this Circular, are now annulled.

In the process of implementation, if any question arises which needs explanation, supplement or amendment, the units are required to make written proposals to the Ministry of Finance for study and settlement.

For the Minister of Finance

Vice Minister

NGUYEN SINH HUNG